Q4 2024 Earnings: RXO Sees Synergy Gains, Mixed Freight Volume
RXO's fourth-quarter earnings showcased accelerated integration of Coyote Logistics, yielding projected synergies of at least $50 million, exceeding the $40 million initially anticipated.
Despite strong growth areas, overall financial performance was impacted by combined legacy RXO and Coyote brokerage volumes, which grew 10% sequentially but declined 6% year-over-year. LTL volume experienced a 1% uptick, while full truckload volume dropped 8%.
Managed Transportation's sales pipeline boasts approximately $2 billion in managed freight, while Last Mile deliveries grew 15% year-on-year.
Adjusted EBITDA reached $42 million for the quarter, surpassing the previous year's $31 million, yet is projected to decline to $20-$30 million in Q1.
Net loss per share was 12 cents, compared to 2 cents in the prior year, impacted by restructuring expenses of $34 million. Adjusted net income improved to $10 million, up from $7 million a year earlier, despite the restructuring costs.